Nippon Steel, Sojitz to take 49% stake in Champion Iron’s project in Canada
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NexGen Energy (TSX: NXE; NYSE: NXE; ASX: NXG) has successfully completed the final federal technical review for its Rook I uranium project in Saskatchewan’s Athabasca Basin.
The Canadian Nuclear Safety Commission (CNSC) has confirmed that NexGen successfully addressed all information requests received as part of the federal technical review, the company announced Tuesday.
NexGen is now eligible to schedule a federal commission hearing, the final step before securing federal project approval. If granted, the company will receive the federal environmental assessment, the last major permit required to advance the development of Rook I.
“With over C$800 million in cash and liquid assets, we are ready, pending a positive Commission decision, to immediately commence major site works,” NexGen CEO Leigh Curyer said.
This milestone follows provincial approval received one year ago and confirmation from the CNSC in September 2023 that the federal licence application met all necessary criteria. NexGen initiated the permitting process for Rook I in 2019.
In a research note on Tuesday, SCP Resource Finance analysts wrote that the technical review completion for Rook I validates that the project will receive construction approval.
“We think the (assumed) approval in the upcoming hearing is a major positive step for uranium mining in Canada, and a reminder that Saskatchewan is a Tier I jurisdiction where assets can be discovered, delineated, and permitted within a stable regulatory framework,” the analysts said.
NexGen shares gained 7% to C$11.89 apiece on Tuesday in Toronto, valuing the company at C$6.7 billion. Its shares traded in a 52-week range of C$7.04 and C$12.14.
The Rook I project is considered to be the largest development-stage uranium deposits in Canada.
A 2021 feasibility study outlined an initial 11-year mine capable of producing 21.7 million lb. of uranium oxide (U3O8) per year during the first five years, and annual production estimated to be as high as 30 million lb., according to an update in August. Its C$1.3 billion capex makes it the largest and lowest cost uranium mine in the world.
The project holds 3.7 million measured and indicated tonnes grading 3.1% U3O8.
